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The Ministry of Electronics and Information Technology (MeitY) has significantly advanced India’s tech startup ecosystem by supporting over 3,600 startups with a total funding of ₹212 crore (US$25.5 million). This initiative forms part of the broader Startup India programme, which aims to nurture innovation and entrepreneurship across the country.
The Startup India initiative is designed to promote and support startups at various stages of their development. Key schemes under this initiative include the Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS), and Credit Guarantee Scheme for Startups (CGSS). These programmes are crucial in helping startups secure investments, loans, and financial backing from angel investors and venture capitalists. As of July 31, 2024, India has over 143,000 DPIIT-recognised startups, reflecting the programme’s impact.
The Technology Incubation and Development of Entrepreneurs (TIDE 2.0) Scheme, initiated by MeitY in 2019, has been a cornerstone of this support. With a budget allocation of ₹264.62 crore (US$32.4 million) over five years, TIDE 2.0 provides both financial and technical assistance to higher education institutions and premier R&D organisations that support ICT startups.
The Startup Accelerator of MeitY for Product Innovation, Development, and Growth (SAMRIDH) Scheme is another significant initiative. Launched to aid existing and new accelerators in scaling IT-based startups, SAMRIDH offers one-to-one matching funding support up to ₹40 lakh (US$48,000) to selected accelerators. In its first round, the scheme has selected 22 accelerators from 14 states and 12 cities to support 175 startups. These accelerators include government-supported organisations, academic institutions, corporate accelerators, and investment firms.
The Next Generation Incubation Scheme (NGIS) addresses the need for a robust software product ecosystem, in line with the National Policy on Software Product (NPSP) 2019. Set to be launched from 12 locations, NGIS aims to support 300 tech startups in Tier-2 and Tier-3 cities over three years, with a total budget of ₹95.03 crore (US$11.5 million). The scheme is designed to provide tailored support to software startups, fostering innovation in underserved areas.
Additionally, MeitY has established 42 Domain Specific Centres of Excellence (CoEs) across various sectors to drive self-sufficiency and innovation in emerging technologies. These CoEs are instrumental in democratising innovation and helping India capture new technology areas.
Theme-based incubation centres also play a crucial role in fostering innovation. For example, Entrepreneur parks have been set up through collaborations with STPI New Delhi, the Makers Village in Cochin, IIIT Patna, and the Government of Bihar. These centres focus on areas such as medical electronics and fabless chip design, providing specialised support to startups in these fields.
In the past five years, the government has supported approximately 10,000 tech startups through various schemes and programmes, disbursing around ₹580 crore (US$70.5 million) in total. The ongoing efforts of MeitY are vital in advancing India’s startup landscape and promoting technological innovation.
As OpenGov Asia reported, the Union Budget 2024-25 focuses on innovative measures to boost startups, employment, and skill development. The budget includes a ₹1,000 crore (US$120 million) Venture Fund for Space Startups and the abolition of Angel Tax, which is expected to enhance the startup ecosystem significantly.
Significant allocations are made for employment and skilling, including a package of five schemes to support 4.1 crore youth with initiatives such as wage subsidies for new workforce entrants and internship opportunities with top companies. Other key measures include the revision of the Model Skill Loan Scheme, increased Mudra loan limits, and the establishment of Bharat Small Reactors.
Additionally, ₹1 lakh crore (US$12 billion) is allocated for the Anusandhan National Research Foundation and ₹6,323.41 crore (US$760 million) for the Department of Scientific and Industrial Research. These initiatives aim to drive economic growth, innovation, and inclusive development across various sectors.
